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LEASE OF PART
in consideration of the price and the covenant on the part of the buyer to pay the rent the company:
demises the buyer with full title guarantee the property:
with the benefit of the rights in the terms specified in part 1 of the second schedule but:
subject to the rights in the terms specified part 2 of the second schedule and
Assigns the buyer the benefit (so far as the same attaches to the property) of all the covenants made with the company by any other person who is the registered proprietor of any part of the development or the estate. To hold the same for the Term paying the rent the first payment of which to be made on the date hereof.
IT THEN GOES ON TO GIVE DEFINITIONS INCLUDING THE FOLLOWING UNDER
"maintenance charge" means (subject to the agreement and declaration in relation thereto contained in paragraph 8 of the seventh schedule:-
in relations to the buildings the proportion applicable to the property (specified in part 3 of the sixth schedule) of the sums spent or to be spent by the management company on the matters specified in part 1 of the fifth schedule and so far as the same relate the matters specified in part 2 of the sixth schedule as estimated or adjusted in accordance with part 1 of the sixth schedule.
In relation to the accessway a sum equal to the total amount spent or to be spent by the management company on the matters specified in part 2 of the fifth schedule. divided by the number of flats garages and other dwellings within the development including the property.

MAINTENANCE CHARGE COVENANTS
the management company and the buyer each covenant with each other and the company in the terms specified in part 1 of the sixth schedule.
SIXTH SCHEDULE
PART 1(covenants by the management company and the buyer in respect of the maintenance charge)
1. Estimate
2. Payment
the buyer shall within 14 days of reciept of demand therefor pay the management company the maintenance charge.
3. Account and adjustment.
4. Disputes.

PART 2 EXPENDITURE TO BE RECOVERED BY MEANS OF THE MAINTENANCE CHARGE
1. COVENANTS
the sums spent by the management company of and incidental to the observance and performance of the covenants on the part of the management comany contained in the fifth schedule and part 1 of this schedule.
2. SUNDRY FEES
all fees charges expenses salaries wages and commissions paid to any Auditor Accountant Surveyor Valuer Architect Solicitor or any other agent contractor or employee whom the management company may employ in connection with the carrying out of its obligations under this lease and the leases included the costs of and incidental to the preperation of the estimates notices and accpunts reffered to in part 1 of this schedule.
3. EMPLOYEES
All expenditure incurred in respect of any employees of the management company in the provision of uniforms or clothing or accommodation and all outgoings incurred in connection therewith or payable in respect thereof anf the cost of any other such items in connection therewith as the managemnt company shall determine.
4. INSURANCE
The costs of effecting and maintaining in force the insurance policies.
5> RATES
all rates including watre rates charges taxes assessments and any othe outgoings payable in respect of the development.
6. MAINTENANCE
All sums paid by the management company for the repair and maintenance decoration cleaning lighting and managing of the development
7. TAX
Any tax including VAT paid or payable by the management company to the extent that the same is not recoverable by the management company.
8.INTEREST
9. LITIGATION
The costs incurred by the managemnt company in bringing or defending any actions or other proceedings against or by any person whatsoever.
10. ADMINISTRATION
The costs of administering the management company including the costs of preparing and auditing accounts the expenses of the directors and the secretary and sending out of notice circulars reports or accounts the holding of meetings and all fees payable to any statutory body or any other body
11 RESERVE FUND
12. HEAD LEASE

Have they submitted documentation (to you, to the court) that shows how the demanded amount relates to what they are allowed to charge? Have you asked for a breakdown?

When you tried to pay the demand and it was refused, was that a payment in full?

LHA's, what were you getting at in post #28?

Hi Siva, thanks, they enclosed a copy of a statement of account with handwritten notes on saying what was still outstanding which is why it has taken me so long to work out how much we owed and how they came to there calculation. They also enclosed with the court paperwork copy of the title to the house which in the does not even say (from there copy of it incvluded in the claim form) that we even pay a service charge!!
We asked for resonable installments as they were offering us payment plans to clear the full amount but at the time it was more than we could afford as I was on statutory maternity pay of £135 per week!

Well the way I see it, you don't have a defence that will do anything other than reduce the court order by the amount you have already paid.

They will be able to recover all their costs, whether they are awarded in the Court or whether they later have to take action.

I have assumed the following:

1) They are still able to submit documentation to the Court which will convince the Judge that at least some of the amount claimed was due.
2) Prior to their County Court application, you did not have a payment returned which would have satisfied the claim in full.
3) Leaseholdanswers doesn't have a cunning plan.

I hope I am wrong and LHA's can suggest something useful but I don't really see how you can do anything other than save on the amount you have already paid and the costs the other party incur from now on could easily exceed what you save by trying to set the CCJ aside and proceeding with a defence.

I accept no legal responsibility for comments/advice I make on this forum. Please check with a solicitor before acting on statements made in a public forum.

Siva I'm lost. Where did you see that? I was hoping LHA may have called in to have a look since I'm in a mild panic about tomorrow morning now!

post #44 litigation costs are part of the maintenance charge which will be shared among all units. I'm not sure of the exact formula or the number of units but it should be in the information you received with your demand.

So if the LL sends a solicitor tomorrow and his fees come to £400 then there are 2 possibilities. The court say you have to pay it all or part of it and any remainder can be collected from the owners of the units.

I accept no legal responsibility for comments/advice I make on this forum. Please check with a solicitor before acting on statements made in a public forum.